explanations, definitions , formulas used, graphs where applicable

Q7. A consumer with an income of I consumes only two goods - X and Y - available at prices Px and Py. Which of the following sets of changes might cause a parallel shift of the budget line? I rises; Py rises; Py rises ii. I rises; Py falls; Py rises iii. I rises; Px falls; Py falls iv . I falls; Py falls; Py fallsQ8. Consider the following statements about the relative sizes of the absolute values of short-run (ESR) and long- run (ELR) price elasticities of supply ($) and demand ( ). Which statements about these elasticities are generally true? Demand for durable goods : ESR